Comparison View

Formal Consolidation |  2009 RevEd
Liability of members of committee of management of society
63.—(1)  A member of the committee of management of a society shall at all times act honestly and use reasonable diligence in the discharge of the duties of his office.
[23/2008]
(2)  Subject to subsection (3), a member of the committee of management of a society may, when exercising powers or performing duties as such a member, rely on reports, statements, financial data and other information prepared or supplied, and on professional or expert advice given, by any of the following persons:
(a)an employee of the society whom the member believes on reasonable grounds to be reliable and competent in relation to the matters concerned;
(b)a professional adviser or an expert in relation to matters which the member believes on reasonable grounds to be within the person’s professional or expert competence; or
(c)any other member, or any committee of such members on which the member concerned did not serve, in relation to matters within that other member’s or committee’s designated authority.
[23/2008]
(3)  Subsection (2) shall apply to a member of the committee of management of a society if, and only if, the member —
(a)acts in good faith;
(b)makes proper inquiry where the need for inquiry is indicated by the circumstances; and
(c)has no knowledge that such reliance is unwarranted.
[23/2008]
(4)  An officer or agent of a society shall not make improper use of any information acquired by virtue of his position as an officer or agent of the society to gain, directly or indirectly, an advantage for himself or for any other person or to cause detriment to the society.
[23/2008]
(5)  Any member of the committee of management of a society who contravenes subsection (1), or any officer or agent of a society who contravenes subsection (4) —
(a)shall be liable to the society for any profit made by him or for any damage suffered by the society as a result of such contravention; and
(b)shall be guilty of an offence and liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both.
[23/2008]
(6)  Where the committee of management of a society has appointed a person as a manager to administer and manage the affairs of the society, the appointment shall not absolve the committee of management from its responsibility for the proper direction of the affairs of the society.
[23/2008]
(7)  In this section, unless the context otherwise requires —
“agent”, in relation to a society, includes a banker, a solicitor or an auditor of the society and any person who at any time has been a banker, a solicitor or an auditor of the society;
“officer”, in relation to a society, includes a person who at any time has been an officer of the society.
[23/2008]
(8)  This section shall be in addition to and not in derogation of any other written law or rule of law relating to the duty or liability of officers of a society.
[23/2008]
Informal Consolidation | Amended Act 3 of 2018
Liability of members of committee of management of society
63.—(1)  A member of the committee of management of a society shall at all times act honestly and use reasonable diligence in the discharge of the duties of his office.
[23/2008]
(2)  Subject to subsection (3), a member of the committee of management of a society may, when exercising powers or performing duties as such a member, rely on reports, statements, financial data and other information prepared or supplied, and on professional or expert advice given, by any of the following persons:
(a)an employee of the society whom the member believes on reasonable grounds to be reliable and competent in relation to the matters concerned;
(b)a professional adviser or an expert in relation to matters which the member believes on reasonable grounds to be within the person’s professional or expert competence; or
(c)any other member, or any committee of such members on which the member concerned did not serve, in relation to matters within that other member’s or committee’s designated authority.
[23/2008]
(3)  Subsection (2) shall apply to a member of the committee of management of a society if, and only if, the member —
(a)acts in good faith;
(b)makes proper inquiry where the need for inquiry is indicated by the circumstances; and
(c)has no knowledge that such reliance is unwarranted.
[23/2008]
(4)  An officer or agent of a society must not make improper use of either of the following to gain, directly or indirectly, an advantage for himself or for any other person, or to cause detriment to the society:
(a)his position as an officer or agent of the society;
(b)any information acquired by virtue of that position.
[Act 3 of 2018 wef 10/04/2018]
(5)  Any member of the committee of management of a society who contravenes subsection (1), or any officer or agent of a society who contravenes subsection (4) —
(a)shall be liable to the society for any profit made by him or for any damage suffered by the society as a result of such contravention; and
(b)shall be guilty of an offence and liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 12 months or to both.
[23/2008]
(6)  Where the committee of management of a society has appointed a person as a chief executive officer to administer and manage the affairs of the society, the appointment shall not absolve the committee of management from its responsibility for the proper direction of the affairs of the society.
[23/2008]
[Act 3 of 2018 wef 10/04/2018]
(7)  In this section, unless the context otherwise requires —
“agent”, in relation to a society, includes a banker, a solicitor or an auditor of the society and any person who at any time has been a banker, a solicitor or an auditor of the society;
“officer”, in relation to a society, includes a person who at any time has been an officer of the society.
[23/2008]
(8)  This section shall be in addition to and not in derogation of any other written law or rule of law relating to the duty or liability of officers of a society.
[23/2008]